Car Allowance Tax Benefits?

mjothi · 23rd December 2009, 22:17

It shows how "good" our taxing system is.

Before this FBT was introduced, we got these benefit free. It irritates our babuji (read PC), then comes FBT saying, since you are getting benefit pay me some tax.

Then comes a rule saying this FBT will be abolished. Now we assume that this rule will turn the wheel back to the pre-FBT regime, which is 0% tax on benefit.

Wait, not in India.

By abolishing you end up paying almost full tax for those benifit.

Wow, Jai ho my India.

tabrez02 · 24th December 2009, 09:57

Quote:

Originally Posted by Surprise

One case:

Lets assume a situation where the car cost Rs.500000/- & the company offer you a interest free loan to a term of 5 yrs. So your monthly installement is Rs.8333/-. This amount will be taken out from your gross salary. Hence you save Rs.2500/- per month (assuming you fall under the 30% slab).

On top of it you can claim the petrol reimbursement to an extent of Rs.4k per month. Here you have a tax saving of Rs.1200/-.

Hence the total saving is Rs.3700/-.

Please add a 12.5% vat also to EMI 8333.

arin_12 · 28th December 2009, 12:22

This new tax introduction is shucking only the salaried people. Big Bonanza in 2010. I was watching a discussion session on DD yesterday, No other channel bother to talk this serious issue as there was no masala. The adviser was telling that.
1. You have to pay all this tax irrespectively u have taken the benefit or not.
2. You have to pay some money for car , depending on the CC.
3. Company travel also will be taxable. That mean if your company sends you for a company meet and pay for that you has to pay.

And many more...
Only option to save tax is getting money as GIFT. So you can see some amount in your offer latter as GIFT component

Why this UPA Govt is behind Salaried person leaving all the Corrupt Politician/ Corporates.

nitinbose · 24th February 2010, 23:11

Quote:

Originally Posted by tabrez02

Please add a 12.5% vat also to EMI 8333.

Hi,

Please note that Car lease is not interest free but at about 13-15%! Add to the EMI the perk value and finally the residual value of the car! I feel you end up paying a hefty sum. It may be better to opt for a bank loan instead - I feel.

regards,

Nitin.

LonelyPlanet · 21st September 2010, 15:24

Anyone have a clue on the FBT that employee has to pay if it is his personal car and car fuel and maintenance is being claimed.

Shivam · 1st January 2022, 11:17

Is there a similar thread with the latest tax structures of 2021?

23rd December 2009, 22:17	#16
mjothi Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 3,287 Thanked: 231 Times View My Garage	It shows how "good" our taxing system is. Before this FBT was introduced, we got these benefit free. It irritates our babuji (read PC), then comes FBT saying, since you are getting benefit pay me some tax. Then comes a rule saying this FBT will be abolished. Now we assume that this rule will turn the wheel back to the pre-FBT regime, which is 0% tax on benefit. Wait, not in India. By abolishing you end up paying almost full tax for those benifit. Wow, Jai ho my India.
	() Thanks

28th December 2009, 12:22	#18
arin_12 BHPian Join Date: Jul 2008 Location: Bangalore Posts: 627 Thanked: 84 Times View My Garage	This new tax introduction is shucking only the salaried people. Big Bonanza in 2010. I was watching a discussion session on DD yesterday, No other channel bother to talk this serious issue as there was no masala. The adviser was telling that. 1. You have to pay all this tax irrespectively u have taken the benefit or not. 2. You have to pay some money for car , depending on the CC. 3. Company travel also will be taxable. That mean if your company sends you for a company meet and pay for that you has to pay. And many more... Only option to save tax is getting money as GIFT. So you can see some amount in your offer latter as GIFT component Why this UPA Govt is behind Salaried person leaving all the Corrupt Politician/ Corporates.
	() Thanks

21st September 2010, 15:24	#20
LonelyPlanet BHPian Join Date: May 2009 Location: Jam-luru Posts: 321 Thanked: 125 Times	Anyone have a clue on the FBT that employee has to pay if it is his personal car and car fuel and maintenance is being claimed.
	() Thanks

1st January 2022, 11:17	#21
Shivam BHPian Join Date: Oct 2021 Location: Bangalore Posts: 49 Thanked: 23 Times	Re: Car Allowance Tax Benefits? Is there a similar thread with the latest tax structures of 2021?
	() Thanks